Evolution Experiences Strong Revenue Growth in 2023, Pushing Net Profit Up 27%

Evolution, a leading live and random number generator (RNG) casino provider, has reported a 27.0% increase in net profit to €1.07bn (£913.5m/$1.16bn) for its 2023 financial year. The company saw impressive revenue growth across both its live and RNG casino verticals during this period, with live casino contributing to 84.7% of the total revenue of €1.80bn.

CEO Martin Carlesund has expressed concern that the company cannot keep pace with the increasing demand for live casino experiences. In response, Evolution has committed to opening at least four new game studios in 2024, in addition to a new facility launched in Bulgaria in Q4 of 2023. The company intends to invest €120.0m in capital expenditures in 2024 to meet the growing demand and expand its global live casino product.

The revenue for 2024 was 23.5% higher year-on-year, with live casino revenue up 28.1% to €1.52bn and RNG revenue climbing 2.6% to €275.3m. Operating expenses were 25.6% higher in 2024, but the impact of revenue growth led to a 25.9% increase in operating profit and a 26.6% increase in pre-tax profit.

In Q4 of 2023, Evolution saw a 16.6% increase in revenue to €475.3m, with live casino revenue jumping 21.1% to €405.6m and RNG revenue falling 3.7% to €69.8m. Geographically, Europe and Asia were the company’s core markets, with revenue of €185.8m and €181.7m respectively. 40% of all revenue in Q4 came from regulated markets.

Despite the positive financial results, Evolution is facing a class action lawsuit alleging that the company deceived investors regarding its growth trajectory and compliance. The lawsuit aims to recover damages from investors who purchased Evolution shares between 14 February 2019 and 25 October 2023.

Looking ahead to 2024, Evolution has raised its EBITDA margin range to 69% to 71% based on its performance in 2023. CEO Martin Carlesund expressed excitement and ambition for the coming year, emphasizing the company’s commitment to continued investment and expansion. However, the lawsuit looms over the company’s otherwise strong financial performance.

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